Vornado Realty Trust

Last updated
Vornado Realty Trust
Company type Public
Industry Real estate investment trust
Founded1982;42 years ago (1982) in Maryland, U.S.
Headquarters
New York City, New York
,
U.S.
Key people
 Steven Roth (chairman & CEO)
Michael J. Franco (CIO)
Joseph Macnow (CFO)
Products Office buildings
RevenueIncrease2.svg US$1.589 billion (2021)
Increase2.svg US$175 million (2021)
Total assets Increase2.svg US$17.266 billion (2021)
Total equity Decrease2.svg US$6.515 billion (2021)
Number of employees
3,224 (2021)
Website vno.com
Footnotes /references
[1]
1999 K Street NW in Washington, D.C. was developed by Vornado Realty Trust and sold for $208M in 2009. It was designed by architect Helmut Jahn. 1999 K Street NW.JPG
1999 K Street NW in Washington, D.C. was developed by Vornado Realty Trust and sold for $208M in 2009. It was designed by architect Helmut Jahn.
330 Madison Avenue, owned by Vornado 330 Mad Av from viaduct jeh.jpg
330 Madison Avenue, owned by Vornado

Vornado Realty Trust is a real estate investment trust formed in Maryland in 1982, with its primary office in New York City. The company invests in office buildings and street retail in Manhattan.

Contents

Investments

Notable properties owned by the company include: [1]

The company also owns:

History

Two Guys

The origins of the company can be traced back to the Two Guys discount store chain, founded in 1947 by brothers Sidney and Herbert Hubschman. [3] In 1959, Two Guys acquired O. A. Sutton Corporation, manufacturers of the Vornado line of electric fans, and the company was subsequently renamed Vornado Inc. [3]

By 1964, the company operated over 200 stores. [4] In the 1970s, Vornado began divesting its retail operations. In 1978, the company sold 80 Two Guys locations in California. [3]

In 1980, Interstate Properties Inc., a real estate development company controlled by Steven Roth, acquired an 18% stake in Vornado, since Roth became interested in the company's real estate holdings. [3] In 1981, Interstate Properties took control of the firm after winning a proxy struggle against existing management and closed additional stores, reducing the number of stores in operation to 12. [5] [6]

Acquisition of Alexander's (1986–1995)

In 1986, Interstate Properties and Donald Trump each bought approximately 20% of Alexander's, a failing retailer whose real estate holdings included a store that occupied the entire block between East 58th and 59th streets and Lexington and Third Avenues in Manhattan. [7]

In 1988, they each raised their stakes to 27% of the company, but Trump pledged his interest as collateral for a personal loan from Citicorp and in 1991, Trump was forced to turn over his holdings to Citibank. [8]

In 1992, Roth and Alexander's creditors forced Alexander's into bankruptcy. [9]

Alexander's emerged from bankruptcy in 1993 as a real estate investment trust. That same year, Vornado Inc. was converted into a REIT, Vornado Realty Trust. In 1995, Vornado bought Citicorp's interest in Alexander's. [10]

Vornado Air licensing deal (1989)

In 1989, the Vornado name was licensed to Vornado Air, LLC, a new company formed to manufacture heating and cooling equipment. Outside of the brand licensing agreement, the Trust has no modern relation to Vornado Air, LLC.[ citation needed ]

Acquisition of properties from Bernard H. Mendik (1997)

In April 1997, the company acquired a company owned by Bernard H. Mendik in a $654 million stock transaction that added a large portfolio of office buildings in Manhattan to Vornado's assets. Mendik became co-chairman of Vornado until his resignation in October 1998. [11]

World Trade Center lease (2001)

On February 15, 2001, the Port Authority announced that Vornado Realty Trust had won the bid for a 99-year lease for the World Trade Center, offering $3.25 billion. [12] Silverstein Properties was outbid by $30 million by Vornado. However, Vornado balked over lease terms and possible tax liabilities. [13] Silverstein signed a lease for the World Trade Center in April 2001, [14] 5 months before the September 11 attacks.

2001–present

In 2001, the company acquired Charles E. Smith Commercial Realty, owner of a portfolio of assets primarily in Arlington, Virginia, in a $1.58 billion transaction. Robert H. Smith and Robert P. Kogod were added to the board of directors of Vornado. [15]

In 2005, the company bought a 32.5% interest in Toys "R" Us. [16] Toys "R" Us filed bankruptcy in 2018 and the investment was written off. [17] [18] [19]

In 2013, Steven Roth replaced Michael D. Fascitelli as CEO of Vornado. Fascitelli had been CEO since 2009. [20]

In 2015, the company spun off its interest in Urban Edge Properties, a spinoff consisting of its former retail holdings outside Manhattan, to its shareholders. [21]

In 2017, the company merged its Charles E. Smith Companies subsidiary into the JBG Companies, forming JBG Smith. [22]

Related Research Articles

<span class="mw-page-title-main">Larry Silverstein</span> American businessman

Larry A. Silverstein is an American businessman. Among his real estate projects, he is the developer of the rebuilt World Trade Center complex in Lower Manhattan, New York City, as well as one of New York's tallest residential towers at 30 Park Place, where he owns a home.

Alexander's, Inc. is a real estate investment trust that owns 7 properties in New York metropolitan area, including 731 Lexington Avenue, the headquarters of Bloomberg L.P. It is controlled by Vornado Realty Trust. It was founded by George Farkas and Louis Schwadron in 1928.

<span class="mw-page-title-main">731 Lexington Avenue</span> Office skyscraper in Manhattan, New York

731 Lexington Avenue is a 1,345,489 sq ft (125,000.0 m2) mixed-use glass skyscraper on Lexington Avenue, on the East Side of Midtown Manhattan, New York City. Opened in 2004, it houses the headquarters of Bloomberg L.P. and as a result, is sometimes referred to informally as Bloomberg Tower. The building also houses retail outlets, restaurants and 105 luxury condominiums. The residence section of the building is known as One Beacon Court and is served by a separate entrance.

Two Guys is a former discount store chain founded in 1946 by brothers Herbert and Sidney Hubschman in Harrison, New Jersey, originally selling major appliances such as televisions. The chain acquired the manufacturers of the Vornado appliance brand in 1959, and spread beyond the New York City metropolitan area to more than 100 locations in upstate New York, eastern Pennsylvania, New Jersey, Connecticut, Massachusetts, Maryland, Virginia, and as far as California. The company's financial success started to decline in the late 1970s, and it was defunct by 1982.

<span class="mw-page-title-main">Kings Plaza</span> Shopping mall

Kings Plaza is a shopping center within the Mill Basin section of Brooklyn in New York City, New York, United States. Opened in September 1970, it is located at the southeast corner of Flatbush Avenue and Avenue U, just north of Floyd Bennett Field. The mall features the traditional retailers Target, Burlington, Primark, and Macy's. The mall features prominent specialty retailers including Cotton On, Sephora, Guess, Zara, Michael Kors, H&M, and Forever 21. The mall was originally owned by a joint venture between Macy's and Alexander's, and is currently owned and managed by Macerich. With approximately 4,200 jobs in retail services and over 120 individual stores, Kings Plaza is the largest indoor shopping center within the borough of Brooklyn.

<span class="mw-page-title-main">660 Fifth Avenue</span> Office skyscraper in Manhattan, New York

660 Fifth Avenue is a 41-story office building on the west side of Fifth Avenue between 52nd and 53rd Streets in the Midtown Manhattan neighborhood of New York City. The office tower was designed by Carson & Lundin and built for its developer Tishman Realty and Construction from 1955 to 1957.

<span class="mw-page-title-main">General Motors Building (Manhattan)</span> Office skyscraper in Manhattan, New York

The General Motors Building is a 50-story, 705 ft (215 m) office tower at 767 Fifth Avenue at Grand Army Plaza on the southeast corner of Central Park, in Manhattan, New York City. The building occupies an entire city block between Fifth Avenue, Madison Avenue, 59th Street, and 58th Street on the site of the former Savoy-Plaza Hotel. It was designed in the International Style by Edward Durell Stone & Associates with Emery Roth & Sons and completed in 1968.

<span class="mw-page-title-main">888 Seventh Avenue</span> Office skyscraper in Manhattan, New York

888 Seventh Avenue is a 628 ft (191m) tall modern-style office skyscraper in Midtown Manhattan which was completed in 1969 and has 46 floors. Emery Roth & Sons designed the building. 888 Seventh Avenue is L-shaped in plan, with wings extending north to 57th Street and east to Seventh Avenue, around the adjacent Rodin Studios. It currently carries the Vornado Realty Trust corporate headquarters. Previously known as the Arlen Building, it had been named for the company responsible for its construction, Arlen Realty & Development Corporation. The Red Eye Grill is located in the building at street level.

<span class="mw-page-title-main">Trizec Properties</span>

Trizec Properties, Inc., previously known as TrizecHahn Corporation, was a real estate investment trust headquartered in Chicago, Illinois. It was originally a Canadian company. The name is derived from the initials of the three groups (Tri) that formed Trizec Properties Ltd: Zeckendorf, Eagle Star, and Covent Gardens.

Stephen Barry Siegel is the Chairman of Global Brokerage at CBRE, the world's largest commercial real estate services company.

Michael D. Fascitelli is an American businessman. He is a member of the Vornado Realty Trust board of trustees and former CEO and president of the company before stepping down from day-to-day responsibilities on February 26, 2013. He is a co-owner of the Milwaukee Bucks, and in 2017 founded a $500 million SPAC, Landscape Acquisitions, with Noam Gottesman where they both serve as co-chairman. Since stepping back from day-to-day responsibilities at Vornado, Fascitelli has formed MDF Capital, a family-office investment firm, Landscape Acquisitions, a hospitality and real estate focused SPAC, and Imperial Companies. He serves on the board of real estate technology startup Cadre.

<span class="mw-page-title-main">Rego Center</span> Shopping mall in New York, United States

Rego Center is a shopping mall bordered by the Long Island Expressway, Junction Boulevard, Queens Boulevard, 63rd Drive, and 99th Street in the Rego Park neighborhood of Queens in New York City.

Arlen Realty & Development Corporation, also known as Arlen, was a real estate investment trust founded in 1959 by Arthur G. Cohen and Arthur N. Levien. In the early 1970s, it was one of the largest publicly traded real estate investment trusts. Arlen began by developing suburban shopping centers throughout the United States, and in 1971, it acquired discount retail chain E.J. Korvette. By 1975, Arlen owned and managed over 42 million square feet of shopping centers, and controlled over $1.7 billion of US real estate assets.

Steven Roth is an American real estate investor, the founder and chairman of Vornado Realty Trust, the largest commercial landlord in New York City. He is also co-founder and managing general partner of Interstate Properties, and chairman and chief executive officer of Alexander's.

<span class="mw-page-title-main">JBG Smith</span> Real estate investment trust

JBG SMITH Properties is a publicly traded real estate investment trust based in Bethesda, Maryland.

<span class="mw-page-title-main">770 Broadway</span> Commercial building in Manhattan, New York

770 Broadway is a 1,200,000-square-foot (110,000 m2) landmarked mixed-use commercial office building in NoHo, Manhattan, in Lower Manhattan, New York City, occupying an entire square block between 9th Street on the north, Fourth Avenue to the east, 8th Street to the south, and Broadway to the west. The building is owned and managed by Vornado Realty Trust. It was completed in 1907 and renovated in 2000 per a design by Hugh Hardy.

Bernard Hyman Mendik was an American real estate developer, founder of the Mendik Company, and chairman of the Real Estate Board of New York.

<span class="mw-page-title-main">2 Park Avenue</span> Office building in Manhattan, New York

2 Park Avenue is a 28-story office building in the Murray Hill neighborhood of Manhattan in New York City. The structure, along the west side of Park Avenue between 32nd and 33rd Streets, was designed by Ely Jacques Kahn and was developed by Abe N. Adelson from 1926 to 1928. The building, known for its facade of brick and colored architectural terracotta, is a New York City designated landmark.

<span class="mw-page-title-main">689 Fifth Avenue</span> Office building in Manhattan, New York

689 Fifth Avenue is a commercial building in the Midtown Manhattan neighborhood of New York City, at the northeast corner of Fifth Avenue and 54th Street. The building was designed by Warren and Wetmore and constructed from 1925 to 1927.

References

  1. 1 2 "Vornado Realty Trust 2021 Form 10-K Annual Report". Securities and Exchange Commission .
  2. ↑ Alexander, Dan (October 16, 2020). "Donald Trump Has At Least $1 Billion In Debt, More Than Twice The Amount He Suggested" . Forbes .
  3. 1 2 3 4 Barmash, Isadore (June 13, 1981). "A Change At Troubled Vornado" . The New York Times .
  4. ↑ Sloane, Leonard (October 10, 1964). "Two Guys Stores Are Expanding" . The New York Times.
  5. ↑ Barmash, Isadore (November 3, 1981). "Vornado To Increase Store Closings By 18 Units" . The New York Times.
  6. ↑ Sloan, Allan (June 2, 1992). "Looking Closer At The Odd Bankruptcy Of Alexander's Inc". The Washington Post .
  7. ↑ "Trump to Acquire 20% of Alexander's" . The New York Times. November 22, 1986.
  8. ↑ "Alexander's Jumps On Trump Rumor" . The New York Times. May 14, 1991.
  9. ↑ "Alexander's Shuts All Its 11 Stores; Plans Liquidation" . The New York Times. May 16, 1992.
  10. ↑ "Vornado and Affiliate Get Control of Alexander's" . The New York Times. March 7, 1995.
  11. ↑ Saxon, Wolfgang (May 30, 2001). "Bernard Mendik, 72, Prominent Landlord and Head of Real Estate Industry Board, Dies" . The New York Times.
  12. ↑ "Vornado wins WTC lease". CNN . Reuters. February 22, 2001.
  13. ↑ Bagli, Charles V. (March 17, 2001). "World Trade Center Deal Remains in Doubt" . The New York Times.
  14. ↑ Bagli, Charles V. (April 27, 2001). "Deal Is Signed To Take Over Trade Center" . The New York Times.
  15. ↑ Spinner, Jackie (October 20, 2001). "Vornado to Buy Commercial Arm of Smith Realty Giant". The Washington Post.
  16. ↑ "Bain Capital, KKR And Vornado Complete Acquisition Of Toys "R" Us, Inc" (Press release). Bain Capital. July 21, 2005 – via Securities and Exchange Commission.
  17. ↑ Jones, Charisse (September 19, 2017). "Toys R Us files for bankruptcy". USA Today .
  18. ↑ Hals, Tom; Rucinski, Tracy (September 19, 2017). "Toys 'R' Us seeks bankruptcy to survive retail upheaval". Reuters.
  19. ↑ Bhattarai, Abha (September 19, 2017). "Toys 'R' Us files for bankruptcy amid struggle to pay down billions in debt". The Washington Post.
  20. ↑ "Michael D. Fascitelli to Step Down as Vornado's Chief Executive Officer; Steven Roth, the Company's Chairman, Appointed as Chief Executive Officer" (Press release). Vornado Realty Trust. February 27, 2013 – via Business Wire.
  21. ↑ "Vornado Announces Completion of Spin-Off of Urban Edge Properties" (Press release). Vornado Realty Trust. January 15, 2015 – via Business Wire.
  22. ↑ "JBG SMITH Properties Announces Completion of Its Spin-Off From Vornado Realty Trust and Its Combination With The JBG Companies" (Press release). Vornado Realty Trust. July 18, 2017 – via PR Newswire.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.